End of The Line
During the late 1970s, the domestic automobile market was moving to smaller cars. The large-sized Matador was no longer attractive to customers demanding more economical cars as fuel and money became increasingly worrisome problems after the 1973 oil crisis and the continuing double digit domestic inflation.
Lacking the financial resources for a full redesign (partly because of the expensive tooling costs of the coupe), AMC dropped the large Ambassador after 1974, while the Matador was discontinued after 1978, around the same time as Ford moved their full-size nameplates to a smaller platform. The downsized 1977 Chevrolet Impala also spelled doom for large intermediates from AMC and Chrysler. American Motors responded to the declining demand for large cars by introducing new nameplate in 1978, the AMC Concord. It combined an "easy-to-handle size with a roomy sumptuous interior" and in contrast to the Matador coupe, with "overall styling was pleasant ... would not offend anyone" This was the first full-line of economical, compact-sized cars with luxurious trim, features, and comfort levels previously available in larger automobiles.
American Motors did not have another large car until the Eagle Premier that was developed with Renault's partnership and introduced right after AMC was purchased by Chrysler.
Read more about this topic: AMC Matador
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